Please use this identifier to cite or link to this item: http://hdl.handle.net/10397/55165
Title: Benchmarking operation and maintenance costs of luxury hotels
Authors: Lai, JHK 
Yik, FWH
Keywords: Hotels
Facilities
Operations
Maintenance
Costs
Benchmarking
Hong Kong
Issue Date: 2008
Publisher: Emerald Group Publishing Limited
Source: Journal of facilities management, 2008, v. 6, no. 4, p. 279-289 How to cite?
Journal: Journal of facilities management 
Abstract: Purpose– Tourism is a pillar of the service industries in Hong Kong. Its growth entails quality hotel accommodations where cost‐effective operation and maintenance (O&M) of their facilities are essential. A benchmarking study was carried out on ten luxury hotels with the aim of identifying the significance and performance of various O&M cost elements.
Design/methodology/approach– A benchmarking club was set up for the practitioners participating in the study. A template was piloted and then refined for use in collecting data, which include the hotels' characteristics, their expenditures on maintenance and project works, in‐house manpower and payroll, contract maintenance costs, and utilities costs and consumptions.
Findings– Energy cost dominates the O&M expenditure of hotels. The cost for maintaining lifts and escalators constitutes a major part of contract maintenance costs. Larger hotels can enjoy a lower unit O&M cost.
Research limitations/implications– Quality, age and occupancy rate of hotels are factors which warrant further work to investigate their effects on O&M costs. It is also necessary to study what cost‐sensitive parameters are appropriate for use in normalising the costs of different trades of O&M work.
Practical implications– It has been shown how a benchmarking curve can be constructed for identifying the performance of utilities cost. This approach can be taken to develop similar curves for benchmarking other cost elements, as well as other aspects including processes and values of O&M works.
Originality/value– Sensitive O&M cost data are seldom disclosed. The study has overcome the difficulties with their collection and the cost benchmarks presented are useful references for hotel practitioners.
URI: http://hdl.handle.net/10397/55165
ISSN: 1472-5967
EISSN: 1741-0983
DOI: 10.1108/14725960810908145
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